Accounting Theory
Case Study 2
CASE 2-2The Theoretical Foundation of Accounting Principles
During the past several years, the FASB has attempted to strengthen the theoretical foundation for the development of accounting principles. Two of the most important results of this attempt are the Conceptual Framework Project and the Emerging Issues Task Force. During this same period, the FASB has been criticized for imposing too many standards on the financial reporting process, the standards‐overload problem.
Required:
a. Discuss the goals and objectives of
i. The Conceptual Framework Project
ii. The Emerging Issues Task Force
b. Discuss the standards overload problem.
CASE 2‐5 Definition of Assets
Your company owns a building that is fully paid for.
Explain how the building meets the definition of an asset under each of the following scenarios.
Required:
a. Your company is using the building as a plant that is producing automobiles.
b. Your company is not using the building but plans to sell it. Explain how the building meets the definition of an asset.
c. Your company is not using the building but plans to remodel it so that it can be used as a plant to produce automobiles.
In your Case Study, you must use at least three (3) references including the textbook. (APA)
Book:
Schroeder, Richard G.; Clark, Myrtle W.; Cathey, Jack M. Financial Accounting Theory and Analysis: Text and Cases, 12th Edition
(This is linked to Turnitin.)
Please use attached template(See cover letter attachment, and use as template)